A monopolistic competitor is like a monopolist in the short run in that when economic profits are
A. equal to zero, price equals marginal cost.
B. equal to zero, price below marginal cost.
C. greater than zero, price exceeds marginal cost.
D. greater than zero, changes in output are due to changes to plants by existing firms and there is no entry.
Answer: C
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If Fast Prints has a contract with local couriers to deliver their products to customers located throughout the city, this is an example of ________.
A) outsourcing B) a market transaction C) forward integration D) backward integration
How many units should the profit maximizing firm produce?
a. 1 b. 2 c. 3 d. 4
Which of the following would not describe two thirds of the for-profit businesses in the United States as measured by sheer number of firms?
a. small retail businesses b. small service operations c. part-time home-based businesses d. small farms e. multinational corporation
If potential buyers of good X expect the price of good X will soon fall, then the current
A) demand for good X will rise. B) demand for good X will remain unchanged. C) demand for good X will fall. D) quantity demanded of good X will fall. E) quantity demanded of good X will rise.